Monetary Authority of Singapore Crypto Oversight: What You Need to Know in 2025

Monetary Authority of Singapore Crypto Oversight: What You Need to Know in 2025 Dec, 5 2025

Singapore Crypto Compliance Cost Calculator

Understand Singapore's Crypto Rules

The Monetary Authority of Singapore (MAS) has implemented strict regulations for crypto businesses. Before June 30, 2025, most new crypto businesses were shut down. Now, only firms meeting rigorous requirements can operate legally in Singapore.

Key facts: Minimum capital requirement is SGD 5 million. You must have a Singapore-based compliance officer. The Travel Rule requires detailed transaction data for transfers over SGD 1,500.

Calculate Your Compliance Costs

Estimated annual transaction value (e.g., SGD 100 million)
Total employees across all departments
Number of different countries you serve customers in
Estimated Annual Compliance Costs
SGD 0.00
Important: These are estimated costs only. Actual expenses may vary based on your specific business model and regulatory requirements.
Key requirements you must meet: Minimum capital of SGD 5 million, Singapore-based compliance officer, Travel Rule implementation, annual audits, and customer suitability assessments.

Comparison with Other Jurisdictions

Singapore's regulations are among the strictest in the world. Compare your compliance costs to other major crypto hubs:

Minimum Capital Requirement SGD 5,000,000
Travel Rule Implementation Cost SGD 50,000 - 200,000
Compliance Officer Salary SGD 150,000 - 250,000/year
Annual Audit Cost SGD 30,000 - 80,000
Penalties for Non-Compliance Up to SGD 200,000 fine + imprisonment for executives

By June 30, 2025, the Monetary Authority of Singapore (MAS) shut the door on most new crypto businesses. Not with a bang, but with a quiet, final notice: licenses will be issued only in extremely limited circumstances. This isn’t a tweak. It’s a full reset. Singapore, once seen as a crypto-friendly hub, has become one of the strictest places in the world to operate a digital asset business - even if you’re only serving customers overseas.

Why Singapore Changed Its Mind

For years, Singapore attracted crypto firms with its stable government, strong legal system, and clear rules. But MAS noticed something troubling. Companies were registering in Singapore not to serve local customers, but to use the country’s reputation as a stamp of legitimacy while operating with little oversight elsewhere. They’d set up a small office in Singapore, get a provisional license, and then run their business from Dubai, London, or Miami - all while letting Singapore’s name carry the weight of trust.

MAS called this regulatory arbitrage. And they weren’t willing to let it continue. In June 2025, they made it clear: if you’re based in Singapore, you’re subject to Singapore’s rules - no matter where your users live. That’s thanks to Section 137 of the Financial Services and Markets Act 2022 (FSMA). It gives MAS power over any Singapore-incorporated company, even if all their servers and customers are outside the country.

This wasn’t a surprise to regulators. But it was a shock to the industry. Many firms had planned to grow under the old system. Now, they had to choose: build a full compliance operation in Singapore or leave.

What It Takes to Get a License Now

Getting a Digital Token Service Provider (DTSP) license from MAS isn’t hard - it’s nearly impossible for most. Here’s what you need:

  • A minimum capital requirement of SGD 5 million (about USD 3.7 million)
  • A Singapore-based compliance officer with proven AML/CFT experience
  • Annual independent audits by a MAS-approved firm
  • Full implementation of the Travel Rule for all transactions over SGD 1,500
  • Robust cybersecurity systems meeting MAS standards
  • Customer suitability assessments and clear risk disclosures
The compliance officer role alone is a major hurdle. These aren’t entry-level jobs. Firms are paying between SGD 150,000 and SGD 250,000 per year for someone qualified. And finding one? That’s even harder. Many candidates are already hired by banks or big fintechs.

The Travel Rule: Not Just a Formality

The Travel Rule isn’t optional. Under Notice PSN02, every crypto transfer over SGD 1,500 must include sender and receiver details: full name, ID number, account info. This isn’t like bank wire rules - it’s stricter. Many platforms didn’t collect this data before. Now, they need software that can automatically extract, verify, and send it to other platforms globally.

Implementation costs? Between SGD 50,000 and SGD 200,000, depending on transaction volume. Smaller firms can’t afford it. Even medium-sized ones are struggling. Notabene’s June 2025 analysis showed that over 60% of firms that applied for a license couldn’t meet this requirement in time.

And it’s not just about tech. You need legal teams that understand how this interacts with GDPR in Europe, KYC laws in the U.S., and data rules in Southeast Asia. That’s a compliance nightmare.

Cartoon Travel Rule robot forcing crypto user to provide ID while credit card is banned.

Consumer Protection: No More Credit Card Crypto

MAS didn’t just target businesses - they protected consumers too. In September 2024, they banned crypto purchases using credit cards. Why? Because people were borrowing money to gamble on volatile assets. Losses piled up. Complaints rose.

Now, every customer must pass a suitability test. Platforms have to ask: Do you understand the risks? Can you afford to lose this money? Are you using this for speculation or long-term holding? These aren’t checkboxes. They’re live assessments - often requiring interviews or detailed questionnaires.

Stablecoins are also under tighter control. MAS requires them to maintain a 1:1 reserve with high-quality, liquid assets. No shady backing. No algorithmic tricks. Just cash or government bonds. This rule, finalized in November 2023, applies to all stablecoins issued or traded in Singapore.

Penalties Are Brutal - And Immediate

There’s no grace period. No warnings. Miss the June 30, 2025 deadline? You’re done.

Penalties include:

  • Fines up to SGD 200,000 (USD 147,000)
  • Imprisonment for executives found knowingly violating rules
  • Forced shutdown of operations in Singapore
  • Blacklisting from future licensing applications
Reed Smith’s legal team confirmed that MAS has already begun enforcement actions against firms that continued operating after the deadline. Some were fined. Others had their bank accounts frozen. One firm’s CEO was barred from holding any financial position in Singapore for five years.

Singapore skyline with only 18 glowing licenses left as other crypto buildings crumble.

What Happened to the Crypto Scene in Singapore?

Before June 2025, around 200 firms had applied for or held provisional DTSP licenses. By July 2025, only 18 had met all requirements. That’s a 91% drop.

Job postings for crypto roles in Singapore fell 37% in Q1 2025 compared to Q4 2024, according to LinkedIn data. Many firms moved teams to Dubai, Switzerland, or Hong Kong. Others shut down entirely.

The ripple effect hit startups, freelancers, and even local tech vendors. Companies that sold compliance software, KYC tools, or blockchain analytics services lost their biggest client base overnight.

Even big names like Binance and Kraken pulled back. They didn’t apply for licenses. They just stopped serving Singapore-based customers. That’s how serious this got.

How Singapore Compares to Other Hubs

Switzerland still welcomes crypto firms with clear licensing paths. The UAE’s Virtual Asset Regulatory Authority (VARA) offers fast approvals and sandbox programs. Even Japan, known for being strict, still issues licenses to hundreds of firms each year.

Singapore? It’s now the opposite. It’s not about being the biggest. It’s about being the cleanest.

MAS isn’t trying to be the crypto capital. They’re trying to be the most trusted financial center in Asia. And they’re willing to sacrifice growth to protect that reputation.

What’s Next for Singapore’s Crypto Rules?

MAS hasn’t said they’re done. In their May 15, 2025 parliamentary reply, they hinted at new rules for DeFi protocols and stablecoin arrangements later in 2025. That means even more complexity ahead.

Experts like Dr. Jane Lim from the Asian Fintech Institute warn this could permanently damage Singapore’s role in global crypto innovation. But MAS officials say they’re not interested in being a crypto playground. They want a crypto system that doesn’t risk the integrity of Singapore’s financial system.

The long-term test? If crypto-related financial crime drops significantly over the next two years, and investor confidence stays high, then this will be seen as a success. If Singapore becomes a ghost town for crypto, and talent and capital flee, then it’s a cautionary tale.

Right now, it’s too early to say which path it takes. But one thing is certain: if you’re thinking of launching a crypto business in Singapore in 2025 or beyond, you’d better have deep pockets, elite compliance teams, and a very clear reason why you need to be there.

Can I still trade crypto in Singapore if I’m a retail investor?

Yes. The MAS rules target service providers - not individual traders. You can still buy and sell crypto through platforms that are licensed or operating legally. But you can’t use a credit card to buy crypto anymore, and you’ll be asked to complete a risk assessment before trading. The goal is to protect you from reckless behavior, not to stop you from investing.

What happens if I run a crypto business from Singapore but only serve customers overseas?

You still need a DTSP license. Section 137 of the FSMA gives MAS authority over any Singapore-based company, regardless of where its customers are. If you’re incorporated in Singapore, operate from Singapore, or have a Singapore-based compliance officer, you’re under MAS jurisdiction. No exceptions.

Is there any way to get a DTSP license after June 30, 2025?

Technically, yes - but only in "extremely limited circumstances." MAS has said they will consider applications from firms with elite compliance infrastructure, proven track records, and a strong operational justification. Most industry experts believe fewer than five new licenses will be granted in the next two years. Don’t expect it to be easy.

Why does MAS require a Singapore-based compliance officer?

To ensure accountability. MAS needs someone physically in Singapore who can be held responsible for AML/CFT compliance. They can’t audit or fine someone in another country effectively. The officer must be available for inspections, meetings, and enforcement actions. This rule closes the loophole where firms would outsource compliance to offshore firms with no real oversight.

Are stablecoins banned in Singapore?

No. But they’re heavily regulated. Only stablecoins backed 1:1 by high-quality, liquid assets like cash or government bonds are allowed. Algorithmic stablecoins or those backed by volatile assets are prohibited. Any stablecoin issued or traded in Singapore must comply with MAS’s November 2023 framework.

Tags:

21 Comments

  • Image placeholder

    Lore Vanvliet

    December 6, 2025 AT 19:33
    So let me get this straight - Singapore just turned into the crypto police state? 🤯 They’re kicking out EVERYONE except the billionaires who can afford $5M in capital? That’s not regulation, that’s elitist gatekeeping. And don’t even get me started on the Travel Rule - you’re forcing crypto firms to turn into banks? This is the opposite of innovation. #FreeCrypto #SingaporeIsOverIt
  • Image placeholder

    Scott SÆ¡n

    December 6, 2025 AT 20:11
    Oh sweet merciful chaos - Singapore just went full corporate vampire and sucked the life out of crypto. They didn’t just close the door - they welded it shut, poured concrete over it, and then posted a sign that says 'Nope. Not even if you’re nice.' I’ve seen more warmth from a vending machine that ate my last dollar. This isn’t oversight. It’s a funeral for innovation.
  • Image placeholder

    Nicole Parker

    December 8, 2025 AT 01:47
    I think there’s something really important here that’s being missed. Singapore didn’t just decide to crack down - they realized that letting crypto firms use their reputation as a shield while dodging responsibility elsewhere was poisoning the whole system. It’s not about being anti-crypto. It’s about not letting bad actors turn your country into a laundering front. The compliance officer requirement? That’s not a barrier - it’s accountability. And honestly, if you’re building a business that can’t handle that, maybe you shouldn’t be in finance at all. It’s sad for the startups, sure - but the cost of trust is higher than most people realize.
  • Image placeholder

    Cristal Consulting

    December 8, 2025 AT 17:02
    This is actually a win for real builders. If you’re serious about crypto and compliance, this clears the noise. The firms that stayed? They’re the ones who were always doing it right. Time to celebrate the good ones and let the rest fade out.
  • Image placeholder

    sonia sifflet

    December 9, 2025 AT 23:24
    You people are acting like this is a tragedy. Singapore has 5.7 million people. They don’t need to be the crypto playground for American gamblers and Russian oligarchs. The Travel Rule? Of course it’s strict - you think money laundering happens by accident? The fact that you’re surprised means you never understood how finance works. India has been doing this for decades. You’re just late to the party.
  • Image placeholder

    Thomas Downey

    December 10, 2025 AT 04:09
    The Monetary Authority of Singapore has demonstrated a level of regulatory foresight that most Western jurisdictions can only dream of. The imposition of Section 137 of the FSMA is not merely prudent - it is an act of sovereign integrity. To permit regulatory arbitrage under the guise of innovation is not merely negligent; it is an affront to the foundational principles of financial governance. The fact that 91% of applicants failed to meet baseline compliance standards speaks volumes about the industry’s systemic rot.
  • Image placeholder

    Jerry Perisho

    December 11, 2025 AT 19:13
    The real story here isn’t the crackdown - it’s the fact that most crypto firms never had real compliance to begin with. The ones that survived? They were the ones who built infrastructure, not marketing decks. The Travel Rule cost? Yeah it’s high. But if you were avoiding KYC before, you weren’t building a business - you were running a casino. This is just capitalism with rules.
  • Image placeholder

    Krista Hewes

    December 11, 2025 AT 20:17
    i just read this and honestly… i dont know if i’m sad or relieved? like i used to think singapore was the cool crypto place but now i get it? they just said ‘no more playing pretend’ and i respect that even if it sucks for the startups. also why does everyone keep saying ‘crypto is dead’ like its a funeral? its just… changing. like a caterpillar. or something. idk im tired
  • Image placeholder

    Noriko Robinson

    December 12, 2025 AT 07:37
    This is the kind of leadership we need. Not hype. Not ‘move fast and break things.’ Real responsibility. I’ve watched too many people lose life savings on crypto because they thought it was a get-rich-quick scheme. Singapore’s rules protect people. That’s not a flaw - it’s the point. And yes, it’s hard. But anything worth doing is hard.
  • Image placeholder

    Mairead Stiùbhart

    December 14, 2025 AT 01:28
    Ah yes, the land of ‘we’re not anti-crypto, we just don’t want your chaos’ - how very Singaporean. You want to be the Swiss of Asia? Fine. But don’t be surprised when all the cool kids pack their bags and leave. Next thing you know, you’ll be the financial equivalent of a museum - pristine, quiet, and completely irrelevant.
  • Image placeholder

    Doreen Ochodo

    December 15, 2025 AT 20:14
    If you’re building something real in crypto, you’ll find a way. Singapore’s rules are brutal but fair. The ones leaving? They were never here to build. They were here to cash out. This isn’t the end - it’s the filter.
  • Image placeholder

    Holly Cute

    December 17, 2025 AT 14:06
    Let’s be real - this isn’t about protecting investors. It’s about protecting Singapore’s brand from being associated with the wild west of crypto. They sacrificed growth for optics. And now the entire ecosystem is paying the price. The Travel Rule? It’s a technical nightmare. The compliance officer salary? A joke. This isn’t regulation - it’s performance art. And the audience? The rest of us, watching the whole thing implode.
  • Image placeholder

    Josh Rivera

    December 17, 2025 AT 15:36
    Oh my god, Singapore just became the financial equivalent of a private school that bans pizza and video games. ‘We’re not here to entertain you, we’re here to make you suffer responsibly.’ Meanwhile, Dubai is handing out licenses like free samples at Costco. Who’s the real innovator? Hint: it’s not the place that treats crypto like a contagious disease.
  • Image placeholder

    Neal Schechter

    December 18, 2025 AT 22:40
    I’ve worked with crypto firms in 7 countries. Singapore’s rules are the toughest, but they’re also the most honest. No pretending. No loopholes. If you’re here, you’re in it for the long haul. That’s actually kind of beautiful. The firms that left? They were never going to last anyway.
  • Image placeholder

    Billye Nipper

    December 19, 2025 AT 14:18
    I’m just… so proud of Singapore? Like, I know it’s painful for a lot of people, but they didn’t compromise. They didn’t chase hype. They said: ‘Our financial system is sacred, and we won’t let it be used as a front for anything.’ That’s rare. That’s brave. That’s leadership. I wish more countries had the guts to do this.
  • Image placeholder

    Richard T

    December 19, 2025 AT 17:34
    Interesting that MAS didn’t ban crypto outright. They just made it so expensive and complicated that only institutions can play. That’s not regulation - that’s economic exclusion disguised as safety. The real question is: who benefits? Not the average investor. Not the startup. Just the big banks and the already-rich.
  • Image placeholder

    Mariam Almatrook

    December 21, 2025 AT 01:08
    The moral bankruptcy of the crypto industry is now fully exposed. Singapore’s actions are not merely regulatory - they are a moral reckoning. To permit unregulated digital asset intermediaries to operate under the auspices of a globally respected financial jurisdiction is not merely an error - it is an existential threat to the integrity of the entire global financial architecture. This is not a crackdown. It is a cleansing.
  • Image placeholder

    rita linda

    December 21, 2025 AT 01:19
    The Travel Rule is the only thing that matters. If you can’t track the money, you’re not a financial institution - you’re a front for money laundering. And if your ‘compliance officer’ is a freelancer in Manila, you’re not serious. MAS is the only authority that’s been honest about this. Everyone else is just pretending.
  • Image placeholder

    Frank Cronin

    December 22, 2025 AT 21:48
    Let’s be honest - this was inevitable. The crypto industry has been using Singapore as a fig leaf for global fraud. The fact that 91% of applicants couldn’t comply? That’s not a failure of regulation - that’s a failure of ethics. The ones who left? They were criminals in business suits. And now they’re crying because the lights are on.
  • Image placeholder

    Stanley Wong

    December 24, 2025 AT 07:09
    I get why people are mad but honestly? If your whole business model was based on exploiting a loophole in Singapore’s rules, then maybe the rules were working. The system didn’t break - the people using it did. Now they’re just mad because the game changed. Tough. Real finance doesn’t run on hype and hashtags.
  • Image placeholder

    Brooke Schmalbach

    December 24, 2025 AT 17:08
    This is the most honest thing any government has done in crypto in years. No sugarcoating. No ‘sandbox’ nonsense. Just: ‘If you can’t meet these standards, you don’t belong here.’ The firms that left? They were never building - they were gambling. And now they’re mad because the house finally closed the door.

Write a comment